Skip to main content

Posts

Showing posts from December, 2012

From Payola to Blogola to Pandola?

Montgomery and Moe showed that it would be efficient for labels to pay for airplay ( Montgomery & Moe, 2002 ). This is not surprising given the impact airplay can have on sales, at least in the old music industry ( Dertouzos, 2008 ). However, direct undisclosed payments to influence radio programming (called Payola, a combination of pay and Victrola) are prohibited by law. Hence, labels developed strategies to circumvent the law by using independent promoters or naming payments “consultant fees”. The bottom line is, there will always be efforts in whatever form to get exposure through a promotion channel if it could increase profits or benefit an artist's career. This principle prevails, as for instance in form of  Last.fm’s Powerplay  or  Jango’s Airplay  program, where artists can simply pay for plays. Or  Blogola , where influential bloggers receive anything from free products, to tickets and money in return for featuring a specific artist on their blog. Today, DJs are r

Some thoughts about where we are regarding digital distribution in 2012 (excerpt of an upcoming book chapter)

Digital distribution has surpassed physical distribution in key markets like the USA or UK and, thus, established as the dominant distribution practice. While the media often speaks of the next killer app that will revolutionize music consumption and dominate music distribution, the analysis of the current situation suggests that different forms of distribution will coexist. The reason is that consumers value music differently, prefer different formats and expect different experiences from consumption. The same applies to content providers. Each artist or record label is in a specific situation pursuing different goals. As a result, a variety of different distribution models have emerged, each with pros and cons for a certain situation. For content providers it is important to choose the appropriate distribution model that supports the overall strategy. The most striking development in digital distribution is the blurring line between promotion and